VA TECH WABAG denies insolvency reports, to appeal order

VA TECH WABAG, a construction company that focuses on water project, denied reports that it was insolvent and said it was appealing the recent order of the Chennai bench of National Company Law Tribunal.

The bench, at its hearing held on 6th October 2017 has passed an order for initiation of Corporate Insolvency Resolution Process (CIRP) under the provisions of insolvency and Bankruptcy Code, 2016 (IBC),” the company said, adding that it is ‘completely solvent’.

“The Company has filed an appeal against this Order with the National Company Law Appellate Tribunal (NCLA),” it said.

The order came in a case filed by Consolidated Construction Consortium Limited, which sought to recover its dues.

“CCCL had worked as one of the sub-contractors for the Company’s 50 MGDWTP, Dwarka Project. CCCL had filed an application with NCT against the Company in respect of an alleged default in payment of dues to CCCL involving a principal amount of Rs.1,50,13,529.

“It is important to note that, CCCL had not fully performed their contractual obligations as per the contract with the company and hence WABAG has disputed the claim,” WABAG said.

It further pointed out that it had consolidated revenue in FY 2016-17 was Rs. 3207 crores and its net profit was Rs.102 crores.

“The Company has a track record of continuous profits over the last 10 years. The Company has one of the best Debt-Equity ratio in the industry and has a credit rating of AA(Stable) for long term and A1+ for short term by ICRA.

“As on March 31, 2017 the Company had a net-worth of Rs. 1,010 crores and gross cash of Rs. 261 crores,” it said.

VA TECH WABAG is undertakes projects in the water sector in more than 20 countries.